Overview of Interim Financial Results for the Fiscal Year Ending March 2027 | JAPAN POST INSURANCE Co.,Ltd. (7181) timely disclosure

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Contents of this document

Financial results presentationInterim results for the fiscal year ending March 202711 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Ordinary income¥1,122 100 million

Net income¥870 100 million-7.2%

Selling, general and administrative expenses¥2,380 100 million

Full-year earnings forecast

Ordinary income

¥53,300 100 million

Ordinary income

¥2,000 100 million

Net income for the current fiscal year

¥1,720 100 million

Adjusted profit

1,800 Approximately ¥100 million

Core profit (non-consolidated)

4,000 Approximately ¥100 million

Insurance-related profit and loss

1,500 Approximately ¥100 million

Investment-related profit and loss

2,500 Approximately ¥100 million

Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。

Ordinary income49.9%

Ordinary income56.1%

Net income for the current fiscal year50.6%

Adjusted profit50.6%

Core profit (non-consolidated)53.7%

Insurance-related profit and loss57.3%

Investment-related profit and loss51.6%

Investment-related gains/losses (positive spread)51.5%

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Adjusted profit has tracked above the original earnings forecast. Core profit is broadly in line with the plan, while investment-related gains and losses are ahead of plan.

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Decline in in-force policies and other factors (including higher insurance benefit payments)-¥27.6 billion
Increase in the burden of additional standard policy reserves relating to the first year of new business-¥4.0 billion
Higher dividends from equities and other factors+¥18.0 billion
Lower dividends from alternative investments-¥9.8 billion
Higher repo costs and other factors-¥13.1 billion
Decrease in required interest+¥19.3 billion
Bond switching transactions involving government bonds and higher dividends from equities and alternative investments, among other factors+approximately ¥30 billion
Higher insurance benefit payments and other factors (including a decline in in-force policies)-approximately ¥20 billion
Lower burden from additional standard policy reserves required in the first year of new contracts and lower business expenses, among other factors+approximately ¥10 billion

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

10-year Japanese government bond yield (end of March 2027)
Before revision2.58%
After revision3.23%
US dollar hedging cost (end of March 2027)
Before revision2.42%
After revision3.07%
USD/JPY exchange rate
Before revision¥150.7
After revision¥157.3
Nikkei Stock Average
Before revision¥51,064
After revision¥66,753
New business (individual insurance)
Before revisionApproximately 800,000 policies
After revisionApproximately 700,000 policies
Number of lapsed policies (individual insurance)
Before revisionApproximately 1.4 million policies
After revisionNo change

New initiatives

Raise the full-year adjusted profit forecast to approximately ¥180 billion
Raise the dividend per share to ¥52
Decide to repurchase own shares for up to ¥47 billion
From the fiscal year ending March 2027, change the components of core profit to insurance-related gains and losses and investment-related gains and losses

Key KPIsA metric the company considers important as a management benchmark.

Value of new business¥542 100 million
Year on year against the same period last year+50.0%
New business margin7.8 %
Year on year against the same period last year+1.9pt
Earnings-seeking assets¥13.2 trillion
Year on year against the same period last yearIncrease from the end of the previous fiscal year
Earnings-seeking assets as a percentage of total assets22.6 %
Year on year against the same period last yearIncrease from the previous fiscal year-end
Interest yield based on investment-related profit and loss2.29 %
Average assumed interest rate1.71 %
EV¥43,790 100 million
Year on year against the same period last year+2.9% from the previous fiscal year-end

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Number of new policies (individual insurance)32.3 ten thousand items
Year on year against the same period last year+29.9% (+74,000 policies)
Number of in-force policies (individual insurance)1,737 ten thousand items
Year on year against the same period last year-2.0% from the previous fiscal year-end
Annualized premiums from new contracts (individual insurance)¥664 100 million
Year on year against the same period last year+17.3%
Annualized premiums from new contracts (third-sector insurance)¥49 100 million
Year on year against the same period last year+49.4%

Medium-term management plan targets

TargetTotal Payout Ratio
Target valueMedium-term average of approximately 55%
Target fiscal yearFiscal years ending March 2027 to March 2029
TargetDividend per share
Target value¥62 or more
Target fiscal yearFiscal year ending March 2029
TargetAdjusted profit
Target value¥190.0 billion
Target fiscal yearFiscal year ending March 2029

Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.

Risk50bp decline in domestic interest rates
ImpactApproximately -¥1.5 billion/6 months
Risk50bp increase in hedging costs
ImpactApproximately -¥5 billion/6 months
Risk10% appreciation of the yen against the dollar
ImpactApproximately -¥10 billion/6 months
Risk10% reduction in equity dividends
ImpactApproximately -¥6 billion/6 months

Annual Dividend

Annual dividend per share52 Yen

Interim and Year-End BreakdownInterim ¥25, projected year-end ¥27

Payout ratio

Total payout ratio: medium-term average of approximately 55%; 55.2% forecast for the fiscal year ending March 2027

Acquisition of treasury shares

Up to ¥47 billion

PeriodNovember 2026 to March 2027

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Interim results for the fiscal year ending March 2027
Ordinary income	¥1,122 100 million
Net income	¥870 100 million (YoY -7.2%)
Selling, general and administrative expenses	¥2,380 100 million
Full-year earnings forecast	Ordinary income ¥53,300 100 million / Ordinary income ¥2,000 100 million / Net income for the current fiscal year ¥1,720 100 million / Adjusted profit 1,800 Approximately ¥100 million / Core profit (non-consolidated) 4,000 Approximately ¥100 million / Insurance-related profit and loss 1,500 Approximately ¥100 million / Investment-related profit and loss 2,500 Approximately ¥100 million
Progress against full-year forecast	Ordinary income 49.9% / Ordinary income 56.1% / Net income for the current fiscal year 50.6% / Adjusted profit 50.6% / Core profit (non-consolidated) 53.7% / Insurance-related profit and loss 57.3% / Investment-related profit and loss 51.6% / Investment-related gains/losses (positive spread) 51.5%
Self-assessment against the plan	Adjusted profit has tracked above the original earnings forecast. Core profit is broadly in line with the plan, while investment-related gains and losses are ahead of plan.
Breakdown of Factors Affecting the Change	Factors Decline in in-force policies and other factors (including higher insurance benefit payments) / Amount -¥27.6 billion, Factors Increase in the burden of additional standard policy reserves relating to the first year of new business / Amount -¥4.0 billion, Factors Higher dividends from equities and other factors / Amount +¥18.0 billion, Factors Lower dividends from alternative investments / Amount -¥9.8 billion, Factors Higher repo costs and other factors / Amount -¥13.1 billion, Factors Decrease in required interest / Amount +¥19.3 billion, Factors Bond switching transactions involving government bonds and higher dividends from equities and alternative investments, among other factors / Amount +approximately ¥30 billion, Factors Higher insurance benefit payments and other factors (including a decline in in-force policies) / Amount -approximately ¥20 billion, Factors Lower burden from additional standard policy reserves required in the first year of new contracts and lower business expenses, among other factors / Amount +approximately ¥10 billion
Key KPIs	Indicator name Value of new business / Value ¥542 100 million / Year on year against the same period last year +50.0%, Indicator name New business margin / Value 7.8 % / Year on year against the same period last year +1.9pt, Indicator name Earnings-seeking assets / Value ¥13.2 trillion / Year on year against the same period last year Increase from the end of the previous fiscal year, Indicator name Earnings-seeking assets as a percentage of total assets / Value 22.6 % / Year on year against the same period last year Increase from the previous fiscal year-end, Indicator name Interest yield based on investment-related profit and loss / Value 2.29 % / Year on year against the same period last year Not disclosed, Indicator name Average assumed interest rate / Value 1.71 % / Year on year against the same period last year Not disclosed, Indicator name EV / Value ¥43,790 100 million / Year on year against the same period last year +2.9% from the previous fiscal year-end
Unit price and quantity metrics	Indicator name Number of new policies (individual insurance) / Value 32.3 ten thousand items / Year on year against the same period last year +29.9% (+74,000 policies), Indicator name Number of in-force policies (individual insurance) / Value 1,737 ten thousand items / Year on year against the same period last year -2.0% from the previous fiscal year-end, Indicator name Annualized premiums from new contracts (individual insurance) / Value ¥664 100 million / Year on year against the same period last year +17.3%, Indicator name Annualized premiums from new contracts (third-sector insurance) / Value ¥49 100 million / Year on year against the same period last year +49.4%
Assumptions Underlying the Business Outlook	Item 10-year Japanese government bond yield (end of March 2027) / Before revision 2.58% / After revision 3.23%, Item US dollar hedging cost (end of March 2027) / Before revision 2.42% / After revision 3.07%, Item USD/JPY exchange rate / Before revision ¥150.7 / After revision ¥157.3, Item Nikkei Stock Average / Before revision ¥51,064 / After revision ¥66,753, Item New business (individual insurance) / Before revision Approximately 800,000 policies / After revision Approximately 700,000 policies, Item Number of lapsed policies (individual insurance) / Before revision Approximately 1.4 million policies / After revision No change
Risk amount incorporated into the outlook	Risk 50bp decline in domestic interest rates / Impact Approximately -¥1.5 billion/6 months, Risk 50bp increase in hedging costs / Impact Approximately -¥5 billion/6 months, Risk 10% appreciation of the yen against the dollar / Impact Approximately -¥10 billion/6 months, Risk 10% reduction in equity dividends / Impact Approximately -¥6 billion/6 months
Medium-term management plan targets	Target Total Payout Ratio / Target value Medium-term average of approximately 55% / Target fiscal year Fiscal years ending March 2027 to March 2029, Target Dividend per share / Target value ¥62 or more / Target fiscal year Fiscal year ending March 2029, Target Adjusted profit / Target value ¥190.0 billion / Target fiscal year Fiscal year ending March 2029
Annual Dividend	Annual dividend per share 52 Yen / Interim and Year-End Breakdown Interim ¥25, projected year-end ¥27
Payout ratio	Total payout ratio: medium-term average of approximately 55%; 55.2% forecast for the fiscal year ending March 2027
Acquisition of treasury shares	Amount Up to ¥47 billion / Number of Shares Not disclosed / Period November 2026 to March 2027
New initiatives	Raise the full-year adjusted profit forecast to approximately ¥180 billion, Raise the dividend per share to ¥52, Decide to repurchase own shares for up to ¥47 billion, From the fiscal year ending March 2027, change the components of core profit to insurance-related gains and losses and investment-related gains and losses

Items this document does not state (13)

Net SalesOperating profitGross Profit MarginOperating profit marginResults for the three months of the current quarterSegment resultsNumber of stores and locationsNumber of employeesFinancial targetsCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The reasons given for the upward revision include investment-related gains and losses exceeding the plan, higher dividends from equities and alternative investments, and rising interest rates. Reasons given for the decline in interim net profit include a decline in in-force policies, higher insurance benefit payments, and a greater burden from additional standard policy reserves required in the first year of new contracts.

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